Hong Kong's initial public offering (IPO) market was the largest in five years. The surge is seen as global money flowing into Hong Kong stocks on the back of China's artificial intelligence (AI) boom.
According to Dealogic and London Stock Exchange Group (LSEG), funds raised in Hong Kong through IPOs and follow-on offerings in the first quarter of 2026 reached $13 billion (about 19.7 trillion won). The Financial Times (FT) said this was the highest since 2021 and outpaced Nasdaq, the New York Stock Exchange, and the recently rising Bombay Stock Exchange in India over the same period.
Given that global IPO proceeds in the first quarter were about $40 billion, more than one-third of worldwide investment capital flowed to Hong Kong.
The performance of corporations listed in Hong Kong also stood out. China's leading AI corporations Zhipu and MiniMax, which listed this year, raised $1.3 billion through their IPOs, and their shares jumped more than 400% immediately after listing.
Analysts say the China-led AI boom sparked by DeepSeek last year has continued into this year. Jason Lui, head of Asia-Pacific equity strategy at BNP Paribas S.A., said, "If last year focused on big tech, this year there is clear demand to invest in 'pure AI players' such as AI labs and AI hardware corporations." In fact, semiconductor and AI-related corporations dominated Hong Kong's IPO market in the first quarter.
Another feature is that Hong Kong is once again strengthening its role as an "overseas fundraising window" for Chinese corporations. As review standards in the Shanghai and Shenzhen markets have become stricter, some corporations have turned to Hong Kong. Since 2024, major corporations including battery corporation CATL have pursued secondary listings in Hong Kong. A variety of sectors, including agriculture corporation Muyuan Foods and the convenience store chain "Busy Ming," are also moving to list, expanding the industry mix. According to the FT, more than 400 corporations are currently preparing to list on the Hong Kong market.
Whether this boom will continue remains uncertain. Some Chinese tech corporations are considering returning to the Shanghai or Shenzhen markets. While mainland listings are still tightly regulated, observers say corporations with core technologies can clear reviews quickly, giving them an edge. A venture capital official in Beijing said, "AI, quantum computing, and neurotechnology corporations are reviewing listings on the Shanghai market."
Tougher oversight by authorities is another variable. Recently, the Hong Kong exchange and the China Securities Regulatory Commission (CSRC) signaled a hard line against corporations that submit poor disclosures. They are moving to separate the wheat from the chaff while keeping the IPO fever alive.